Portfolio Advisors approaches halfway on secondaries fundraise

US mid-market-focused Secondary Fund IV made its first sale at the end of December.

Portfolio Advisors has held an interim close on its latest dedicated secondaries fund.

Portfolio Advisors Secondary Fund IV has raised $728 million through one onshore and one offshore vehicle, according to two filings with the US Securities and Exchange Commission. The fund has received commitments from 40 investors since first sale on 31 December.

Toronto-headquartered Lytton Financial and London-based EBW Capital are listed as placement agents.

Secondaries Investor reported in November that the Darien, Connecticut-headquartered firm was targeting $1.5 billion for PASF IV. The fund has a 10 percent preferred return and charges 10 percent carried interest, according to an investor document seen by Secondaries Investor.

Pennsylvania Public School Employees’ Retirement System, which committed $150 million, and University of West Florida Foundation, which committed $4 million, are among PASF IV’s limited partners so far, according to Secondaries Investor data.

PASF IV will primarily target US mid-market buyout funds, with 25 percent going to growth and venture capital, 10 percent to distressed and special situations, and 10 percent to opportunistic investments, Secondaries Investor reported in December. The fund has a $2.25 billion hard-cap.

Predecessor PASF III collected $1.5 billion, holding the final close on its hard-cap in January 2018. The fund had a net internal rate of return of 36.3 percent and a net multiple of 1.25x as of June 2019, according to a presentation prepared for PSERS.

Secondaries fundraising had its best-ever first quarter this year. The 10 secondaries funds that held final closes raised a combined $24.27 billion, Secondaries Investor reported.

Portfolio Advisors did not return a request for comment.